An Increase in a Country's Budget Deficit

question 16

Multiple Choice

An increase in a country's budget deficit

• A)increases net capital outflow,so the demand for its currency in the market for foreign-currency exchange shifts right.
• B)increases net capital outflow,so the supply of its currency in the market for foreign-currency exchange shifts right.
• C)decreases net capital outflow,so the demand for its currency in the market for foreign-currency exchange shifts left.
• D)decreases net capital outflow,so the supply of its currency in the market for foreign-currency exchange shifts left.

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Definitions:

Radio Broadcast

The transmission of audio content through radio waves to reach a wide audience, commonly used for music, news, and entertainment programming.

Consumers

Individuals or organizations that purchase goods or services for personal use or consumption.

Imperfect Information

A situation where all parties in an economic transaction do not have equal access to relevant information.

Marginal Benefit

Marginal benefit is the additional satisfaction or utility that a consumer receives from consuming one more unit of a good or service.